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Reduced demand hurts Air NZ

Fuseworks Media
Fuseworks Media

Wellington, Aug 26 NZPA - Air New Zealand reported normalised full year earnings before tax falling 6 percent to $137 million, amid subdued demand for air travel in tough economic conditions.

Operating revenue for the year fell 12 percent or $563m to $4 billion, although when the unfavourable impact of the strengthening New Zealand currency and discontinued freighter operations were excluded, it fell 8 percent.

Passenger revenue fell by $429m in the year to June, due to a 7.1 percent fall in yield and a 4.7 percent demand decline, measured in revenue passenger kilometres, the airline said today.

"While stabilising fuel prices and reduced operating costs provided some relief, reduced demand combined with a fall in ticket prices significantly reduced passenger revenue."

Bottom line net profit was $82m, compared to $21m a year ago.

A final dividend of 4c a share is to be paid, from 3.5cps last year.

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